Good afternoon.
I want to know if my linear regression model is misspecified when I establish the Ramsey RESET test or not and get a deep analysis of the output.
PS: I use the command "dataex" to collect data from Stata but I get this message "Use the count() option to list more". So, I listed only 100 out of 1320 observations.
Here is the result of my Ramsey Reset Test.
Thank you for your help and have a great day.
I want to know if my linear regression model is misspecified when I establish the Ramsey RESET test or not and get a deep analysis of the output.
PS: I use the command "dataex" to collect data from Stata but I get this message "Use the count() option to list more". So, I listed only 100 out of 1320 observations.
Code:
* Example generated by -dataex-. To install: ssc install dataex clear input int YEAR str22 INDUSTRY str15 TICKER double(EVA SIZE LEVERAGE PoR VOLATILITY) int AGE double(STOCKRETURN MARKETRETURN MARKETADJUSTEDRETURN GROWTH INTANGIBLEASSETS) 2010 "Consumer, Non-cyclical" "DIM FP Equity" -3588.7002582 2.8071336952942993 .2017536776188989 -.2644179585053621 6.289937434616741 140 .3447537473233405 .008407724095638336 .3363460232277022 .3982999920845032 352.343994140625 2011 "Consumer, Non-cyclical" "DIM FP Equity" -4426.4248264 2.8756600031431527 .20384718362907667 -.3200473834575988 9.1329041613256 141 .29888712241653415 -.17593742540553448 .4748245478220686 .4683000147342682 353.34100341796875 2012 "Consumer, Non-cyclical" "DIM FP Equity" -4003.1354682 3.0515948914060895 .17823536969715292 -.2700155049686377 21.7791432968401 142 .49511002444987784 .15270455152162302 .34240547292825485 .6166999936103821 396.78900146484375 2013 "Consumer, Non-cyclical" "DIM FP Equity" -4369.098902799999 3.3173538953629276 .18955386563531154 -.25461705594785444 27.816653430391796 143 .6606704824202778 .1719018046166907 .4887686778035871 .7200000286102295 425.41400146484375 2014 "Consumer, Non-cyclical" "DIM FP Equity" -5596.0248583 3.394004039330378 .1168036784325222 -.25413434195632373 30.079739252060243 144 .3234859675036928 .0001374533480348762 .3233485141556579 .7867000102996826 426.9460144042969 2015 "Consumer, Non-cyclical" "DIM FP Equity" -5910.2237852 3.734862361892527 .11092289264888097 -.1692132984177832 146.90224254765744 145 1.191220238095238 .09094921821769045 1.1002710198775474 1.2799999713897705 480.3089904785156 2016 "Consumer, Non-cyclical" "DIM FP Equity" -5447.381506000001 3.742571648234277 .08556347833213057 -.19998958862036206 61.6075243602294 146 .01816638370118846 .05385759583621944 -.035691212135030986 1.6699999570846558 488.79400634765625 2017 "Consumer, Non-cyclical" "DIM FP Equity" -8109.154091199999 3.744882886322759 .1137327668182676 -.24032205999205405 66.28032173514192 147 -.014869281045751694 .11582835943811336 -.13069764048386506 1.75 558.9509887695313 2018 "Consumer, Non-cyclical" "DIM FP Equity" -13221.812423999998 3.905900508456422 .09522030772637691 -.20380962451694767 254.87604048335544 148 .4488306518493945 -.1225479484884155 .5713786003378101 2.259999990463257 562.18701171875 2019 "Consumer, Non-cyclical" "DIM FP Equity" -11303.738565200001 4.134018095440877 .07510721473618726 -.22406301039227977 266.25682672867583 149 .6908986834573555 .27335639201198264 .41754229144537286 2.5399999618530273 626.8140258789063 2020 "Consumer, Non-cyclical" "DIM FP Equity" -9868.661657499999 4.428828969136678 .19117620227958101 -.08758163359405784 896.6550449971584 150 .9715639810426541 -.06830521436750278 1.0398691954101569 3.880000114440918 1508.6829833984375 2010 "Utilities" "RUI FP Equity" -8521.526938999998 3.0883447835218654 .2353076125403071 -.6424239199829751 35.30409254101701 20 .46119842829076607 .008407724095638336 .45279070419512774 1.1978000402450562 265.58599853515625 2011 "Utilities" "RUI FP Equity" -9820.163242999999 3.0891364718945087 .27531172240144064 -.6969870115391047 15.792691633087635 21 -.08171676959218982 -.17593742540553448 .09422065581334466 1.177899956703186 381.322998046875 2012 "Utilities" "RUI FP Equity" -11016.407293200002 3.22512867590648 .3158388276709308 -.5419519269733615 24.617030094839063 22 .2634105352138188 .15270455152162302 .11070598369219578 1.454200029373169 448.60400390625 2013 "Utilities" "RUI FP Equity" -13053.8704048 3.2343472274762686 .28045385601328005 -.6771545958341295 17.871869472271456 23 -.09942491656511111 .1719018046166907 -.2713267211818018 1.5080000162124634 464.12298583984375 2014 "Utilities" "RUI FP Equity" -13484.414732 3.264079343342337 .2888174689731998 -.6199042494598145 21.45404120001725 24 .026935952487297143 .0001374533480348762 .026798499139262265 1.517799973487854 576.4609985351563 2015 "Utilities" "RUI FP Equity" -17063.256718 3.4801592356941415 .31849979625119207 -.4940722863197552 60.91569207456262 25 .5056842649211954 .09094921821769045 .41473504670350503 2.065000057220459 791.458984375 2016 "Utilities" "RUI FP Equity" -15490.5903498 3.551371195653819 .2857209774629596 -.6004172635586621 43.04609896050112 26 .12012012012011998 .05385759583621944 .06626252428390053 2.374000072479248 795.9180297851563 2017 "Utilities" "RUI FP Equity" -19163.0751647 3.743154979995348 .3426705561877677 -.5008189530203363 95.85138575516122 27 .47782510648960164 .11582835943811336 .36199674705148827 2.869999885559082 1136.89404296875 2018 "Utilities" "RUI FP Equity" -26779.805858400003 3.656762518947782 .3116192172195532 -.666214035502027 100.35106233833368 28 -.20515428958969134 -.1225479484884155 -.08260634110127583 2.6500000953674316 1128.7039794921875 2019 "Utilities" "RUI FP Equity" -27417.535660399997 3.7390619345187344 .29233754288695174 -.5029570968697413 36.05495939946816 29 .16787542662116034 .27335639201198264 -.1054809653908223 3.119999885559082 1276.4840087890625 2020 "Utilities" "RUI FP Equity" -27417.535660399997 3.7390619345187344 .29233754288695174 -.5518642857142857 116.00701255122696 30 -.30630136986301376 -.06830521436750278 -.23799615549551098 2.7504000663757324 1276.4840087890625 2010 "Consumer, Non-cyclical" "OR FP Equity" -185945.90519 4.698365601939414 .06618145521844912 -.4114836808501139 57.95187555563496 101 .06512820512820511 .008407724095638336 .05672048103256677 3.819999933242798 7907.10009765625 2011 "Consumer, Non-cyclical" "OR FP Equity" -172155.29054 4.68717938204555 .04275512331704992 -.4542322834645669 72.30912727215497 102 -.05614035087719295 -.17593742540553448 .11979707452834153 4.110000133514404 8681.900390625 2012 "Consumer, Non-cyclical" "OR FP Equity" -161414.95418000003 4.797735618642889 .008397983129535503 -.4422359382083203 109.65507926952128 103 .28239608801956 .15270455152162302 .129691536497937 4.789999961853027 9103.599609375 2013 "Consumer, Non-cyclical" "OR FP Equity" -191858.48448999997 4.884193035818653 .010984847258160102 -.4818470691636807 117.81953912834577 104 .21734985700667298 .1719018046166907 .045448052389982285 4.949999809265137 8311.400390625 2014 "Consumer, Non-cyclical" "OR FP Equity" -169883.49137 4.887650453966081 .08073602255854867 -.323673170135636 81.34797535006692 105 .09083790133124517 .0001374533480348762 .0907004479832103 8.510000228881836 10240 2015 "Consumer, Non-cyclical" "OR FP Equity" -211829.14635000002 4.939350314154527 .023191036833346678 -.46545763328683204 156.29204177847578 106 .11486001435750179 .09094921821769045 .02391079613981134 5.920000076293945 11094.400390625 2016 "Consumer, Non-cyclical" "OR FP Equity" -190730.1027 4.987313422236013 .03549236321996509 -.5901539055959817 119.87289184192018 107 .11654861558274303 .05385759583621944 .06269101974652358 5.550000190734863 11971.900390625 2017 "Consumer, Non-cyclical" "OR FP Equity" -183658.07705 5.015046857628885 .03323231208491445 -.522337633327749 101.89742538659057 108 .06630152781781494 .11582835943811336 -.04952683162029842 6.400000095367432 11451.400390625 2018 "Consumer, Non-cyclical" "OR FP Equity" -257678.43795000002 5.051525492626226 .03227718910485601 -.5291882733480515 189.094500159694 109 .08786158421194919 -.1225479484884155 .2104095327003647 6.960000038146973 12684.400390625 2019 "Consumer, Non-cyclical" "OR FP Equity" -244107.22322 5.168329337468359 .06589164981351203 -.5922933333333333 264.74281428823645 110 .312127236580517 .27335639201198264 .03877084456853436 6.663000106811523 12749.400390625 2020 "Consumer, Non-cyclical" "OR FP Equity" -200433.87556 5.240569432772762 .058396721619743665 -.6147499579053712 355.6087318003117 111 .1772727272727273 -.06830521436750278 .24557794164023009 6.369999885559082 13870.400390625 2010 "Industrial" "DG FP Equity" -290197.7801600001 4.3427869109855175 .34828905291669326 -.5084182667943015 41.94360797856899 111 .030656194578160652 .008407724095638336 .022248470482522317 3.3499999046325684 30229.400390625 2011 "Industrial" "DG FP Equity" -262675.33444 4.261001370980183 .33701250676844646 -.4971905687129129 77.35859496882156 112 -.19079578139980827 -.17593742540553448 -.014858355994273792 3.5199999809265137 30560.099609375 2012 "Industrial" "DG FP Equity" -222569.6333 4.285183177599361 .31853115606466814 -.5106937923839332 31.5365617990286 113 .043831640058055094 .15270455152162302 -.10887291146356792 3.569999933242798 30547 2013 "Industrial" "DG FP Equity" -283967.8488 4.424519061680368 .3224205720083709 -.5061162079510704 65.5015803967279 114 .32703003337041153 .1719018046166907 .15512822875372084 3.569999933242798 33018 2014 "Industrial" "DG FP Equity" -244640.9464 4.4019960532708895 .32831984769157546 -.5096540627514079 67.5671703453085 115 -.04631181894383908 .0001374533480348762 -.046449272291873955 4.46999979019165 31135 2015 "Industrial" "DG FP Equity" -205013.5797 4.51559307692524 .3055175631969363 -.4980449657869013 60.64364146054058 116 .29949461656778736 .09094921821769045 .20854539835009692 3.690000057220459 31598 2016 "Industrial" "DG FP Equity" -189136.5617 4.55489993666689 .3164092976696942 -.41996007984031936 45.81375871014915 117 .09401420358471428 .05385759583621944 .04015660774849484 4.519999980926514 35213 2017 "Industrial" "DG FP Equity" -256997.59689999998 4.674399048058065 .3076228815380428 -.4357480888241718 97.45284325979348 118 .317092034029389 .11582835943811336 .20126367459127564 4.949999809265137 35556 2018 "Industrial" "DG FP Equity" -326940.5727 4.601563254478058 .3217484772482981 -.4663090848139457 63.37205286040689 119 -.15419847328244285 -.1225479484884155 -.03165052479402734 5.380000114440918 37542 2019 "Industrial" "DG FP Equity" -311616.6717 4.739729366121631 .3560153139020832 -.46134969325153374 125.54200435199044 120 .3746181616217718 .27335639201198264 .10126176960978917 5.880000114440918 45926 2020 "Industrial" "DG FP Equity" -316981.4987 4.660194950458198 .356507431580102 -.5587761674718197 166.09940147225802 121 -.1781818181818182 -.06830521436750278 -.10987660381431541 2.2300000190734863 44350 2010 "Consumer, Cyclical" "STLA FP Equity" . . . . . 0 . .008407724095638336 . . . 2011 "Consumer, Cyclical" "STLA FP Equity" . . . . . 0 . -.17593742540553448 . . . 2012 "Consumer, Cyclical" "STLA FP Equity" . . . . . 0 . .15270455152162302 . . . 2013 "Consumer, Cyclical" "STLA FP Equity" -231125.71280000004 . .3472263627399271 -.0011061946902654867 . 0 . .1719018046166907 . . 19514 2014 "Consumer, Cyclical" "STLA FP Equity" -254981.2905 . .33340912910656556 0 . 0 . .0001374533480348762 . . 22847 2015 "Consumer, Cyclical" "STLA FP Equity" -219025.76289999997 . .2627443193100905 -.8473053892215568 . 0 . .09094921821769045 . . 24736 2016 "Consumer, Cyclical" "STLA FP Equity" -210964.3427 . .23047065926799115 -.009983361064891847 . 0 . .05385759583621944 . . 26644 2017 "Consumer, Cyclical" "STLA FP Equity" -342950.8742 . .18661668345465685 -.0002864508736751647 . 0 . .11582835943811336 . . 24932 2018 "Consumer, Cyclical" "STLA FP Equity" -313246.137 . .14996954775840535 -.0002771618625277162 . 0 . -.1225479484884155 . . 25719 2019 "Consumer, Cyclical" "STLA FP Equity" -257037.3289 . .13158377871159888 -.4614919963757173 . 0 . .27335639201198264 . . 26704 2020 "Consumer, Cyclical" "STLA FP Equity" -294584.6468 . .21174170259701194 0 . 0 . -.06830521436750278 . . 25574 2010 "Consumer, Non-cyclical" "ALD FP Equity" . . . . . 64 . .008407724095638336 . . . 2011 "Consumer, Non-cyclical" "ALD FP Equity" . . . . . 65 . -.17593742540553448 . . . 2012 "Consumer, Non-cyclical" "ALD FP Equity" . . . . . 66 . .15270455152162302 . . . 2013 "Consumer, Non-cyclical" "ALD FP Equity" . . . . . 67 . .1719018046166907 . . . 2014 "Consumer, Non-cyclical" "ALD FP Equity" -28619.74469 . .7243999235976993 0 . 68 . .0001374533480348762 . 9.300000190734863 195.3000030517578 2015 "Consumer, Non-cyclical" "ALD FP Equity" -36884.52114999999 . .6828340889293003 -.23591798255950977 . 69 . .09094921821769045 . 10.5 211.60000610351563 2016 "Consumer, Non-cyclical" "ALD FP Equity" -33572.79384 . .695174135266849 -.2921633769786985 . 70 . .05385759583621944 . 12.699999809265137 453.3999938964844 2017 "Consumer, Non-cyclical" "ALD FP Equity" -20463.220520000003 3.7175871720342655 .7129232596055074 -.2741367159971811 16.003300684044458 71 . .11582835943811336 . 1.399999976158142 563.2000122070313 2018 "Consumer, Non-cyclical" "ALD FP Equity" -67734.79843 3.6231077804076848 .723793018925532 -.40010799136069114 24.157089699387278 72 -.19473480449090197 -.1225479484884155 -.07218685600248646 1.3799999952316284 574.5999755859375 2019 "Consumer, Non-cyclical" "ALD FP Equity" -67264.10763999999 3.7469290999333467 .7242016734472152 -.4147465437788018 11.713447174019466 73 .3307692307692307 .27335639201198264 .057412838757248064 1.399999976158142 616.0999755859375 2020 "Consumer, Non-cyclical" "ALD FP Equity" -67264.10763999999 3.7469290999333467 .7242016734472152 -.4590035307963907 28.91515365654204 74 -.1690751445086705 -.06830521436750278 -.10076993014116772 1.2616000175476074 616.0999755859375 2010 "Consumer, Cyclical" "FDJ FP Equity" . . . . . 34 . .008407724095638336 . . . 2011 "Consumer, Cyclical" "FDJ FP Equity" . . . . . 35 . -.17593742540553448 . . . 2012 "Consumer, Cyclical" "FDJ FP Equity" -7993.849824399999 . .004397123510621629 -.8591026650174294 . 36 . .15270455152162302 . 666.9749755859375 65.24199676513672 2013 "Consumer, Cyclical" "FDJ FP Equity" -6110.282929500001 . .014539042855192 17.679700606529874 . 37 . .1719018046166907 . -38.744998931884766 65.77999877929688 2014 "Consumer, Cyclical" "FDJ FP Equity" -5498.5156596 . .009055743771259341 -.8359259608434682 . 38 . .0001374533480348762 . 795.5250244140625 74.46700286865234 2015 "Consumer, Cyclical" "FDJ FP Equity" -4057.829740000001 . .11717934701585252 -1.3028409090909092 . 39 . .09094921821769045 . 880 87.19999694824219 2016 "Consumer, Cyclical" "FDJ FP Equity" -5161.4012 . .07632246730431388 -.6657443276148313 . 40 . .05385759583621944 . 903.5 96.4000015258789 2017 "Consumer, Cyclical" "FDJ FP Equity" -6047.0979800000005 . .0624773468648061 -.7400234741784038 . 41 . .11582835943811336 . 852.010009765625 104.80000305175781 2018 "Consumer, Cyclical" "FDJ FP Equity" -5264.54574 3.6580662765580914 .14551820728291318 -.8894736842105263 . 42 . -.1225479484884155 . .699999988079071 575.4000244140625 2019 "Consumer, Cyclical" "FDJ FP Equity" -9088.592620000001 3.8540210754459325 .2506814809702909 -.39026672905942916 17.51712541368078 43 . .27335639201198264 . 1.1200000047683716 548.0999755859375 2020 "Consumer, Cyclical" "FDJ FP Equity" -9088.592620000001 3.8540210754459325 .2506814809702909 -.39026672905942916 69.1100124042258 44 .5701993704092339 -.06830521436750278 .6385045847767367 1.1200000047683716 548.0999755859375 2010 "Financial" "URW NA Equity" . . . . 152.08881846363062 3 -.03708523096942088 .008407724095638336 -.04549295506505922 . . 2011 "Financial" "URW NA Equity" . . . . 136.60651104799817 4 -.0764627659574468 -.17593742540553448 .09947465944808767 . . 2012 "Financial" "URW NA Equity" . . . . 225.4292231100853 5 .32039187227866456 .15270455152162302 .16768732075704154 . . 2013 "Financial" "URW NA Equity" . . . . 130.19437636954078 6 .023632866172025344 .1719018046166907 -.14826893844466535 . . 2014 "Financial" "URW NA Equity" . . . . 146.3574043487118 7 .1428187919463087 .0001374533480348762 .1426813385982738 . . 2015 "Financial" "URW NA Equity" . . . . 187.2491563479381 8 .10124500822175246 .09094921821769045 .010295790004062014 . . 2016 "Financial" "URW NA Equity" . . . . 186.62447403192405 9 -.03263651877133108 .05385759583621944 -.08649411460755052 . . 2017 "Financial" "URW NA Equity" -188693.7698 4.32159640085358 .38329825859716476 -.41742160278745644 127.14932437975713 10 -.0728476821192053 .11582835943811336 -.18867604155731865 24.459999084472656 694.5999755859375 2018 "Financial" "URW NA Equity" -239952.715 4.272405048016525 .39341394016786724 -1.046649209582 288.02026424225573 11 -.3552380952380952 -.1225479484884155 -.2326901467496797 8.420000076293945 3993.300048828125 2019 "Financial" "URW NA Equity" -162459.94116000002 4.289208684802129 .41444421197725656 -1.3540288226230401 160.13343728125415 12 .03877400295420975 .27335639201198264 -.2345823890577729 7.96999979019165 3862.800048828125 2020 "Financial" "URW NA Equity" -147782.64695999998 3.9524455855449743 .4946034938492749 .1036242131824862 492.04180608930955 13 -.5408460718094561 -.06830521436750278 -.4725408574419533 -52.099998474121094 2124.39990234375 2010 "Consumer, Non-cyclical" "KORI FP Equity" -8279.8825131 2.7234088740782214 .2945048461506798 -.7626362936240931 15.881801014233647 7 -.17749784819925396 .008407724095638336 -.1859055722948923 .7020000219345093 1268.0780029296875 2011 "Consumer, Non-cyclical" "KORI FP Equity" -7263.4752751999995 2.6144703014021826 .3159743264965759 -.8966726660205824 24.487318275687382 8 -.2491031563733966 -.17593742540553448 -.07316573096786214 .6187999844551086 1371.6180419921875 2012 "Consumer, Non-cyclical" "KORI FP Equity" -5565.2352716000005 2.6548605704213406 .32472223043650084 -.19476669244650685 9.952082850916234 9 .008345860338270162 .15270455152162302 -.14435869118335284 .6280999779701233 1324.7039794921875 2013 "Consumer, Non-cyclical" "KORI FP Equity" -6713.3316429999995 2.855329951046956 .3329687429184355 -.2665523516237402 49.00031521875236 10 .5492818912776064 .1719018046166907 .3773800866609157 .7666000127792358 1400.9639892578125 2014 "Consumer, Non-cyclical" "KORI FP Equity" -16800.957128 3.3777097170003745 .3265588109419193 -.48777222711986157 27.665495731360945 11 .4667287134751997 .0001374533480348762 .4665912601271648 .7111999988555908 3330.89794921875 2015 "Consumer, Non-cyclical" "KORI FP Equity" -19462.7014225 3.4273716129402914 .37531480771902714 -.5921010035610229 20.32014288815345 12 .11523225341559677 .09094921821769045 .024283035197906325 .6834999918937683 3408.26806640625 2016 "Consumer, Non-cyclical" "KORI FP Equity" -19276.256916799997 3.3487246793141634 .40424460251083394 -.21877784801931557 35.42786082507402 13 -.17339689601522412 .05385759583621944 -.22725449185144356 1.5240000486373901 3893.06396484375 2017 "Consumer, Non-cyclical" "KORI FP Equity" -28843.4080367 3.3774018982666876 .4006731205205061 -.18735152212779504 22.003401430544226 14 .04507412445530623 .11582835943811336 -.07075423498280713 1.875 3978.443115234375 2018 "Consumer, Non-cyclical" "KORI FP Equity" -29511.8819218 3.406169986772053 .42946927676588004 -.20193611785630172 35.94046884198601 15 .05552491469584662 -.1225479484884155 .17807286318426213 1.394700050354004 4134.64111328125 2019 "Consumer, Non-cyclical" "KORI FP Equity" -24961.7127336 3.5400752192080724 .5949932530279094 -.21500510110654775 37.21833428868575 16 .3487802584047736 .27335639201198264 .07542386639279097 1.2839000225067139 4448.01416015625 2020 "Consumer, Non-cyclical" "KORI FP Equity" -24961.7127336 3.5400752192080724 .5949932530279094 -.6258121827411168 71.43628835131106 17 -.19058454052630078 -.06830521436750278 -.122279326158798 .4560999870300293 4448.01416015625 2010 "Energy" "FP FP Equity" -1344125.636059 5.095246147440393 .2105373022168413 -.48226278999289934 36.260363446701724 86 -.11898677924675044 .008407724095638336 -.12739450334238878 6.274899959564209 11918.4619140625 end
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regress INTANGIBLEASSETS EVA SIZE LEVERAGE VOLATILITY PoR GROWTH
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Ramsey RESET test using powers of the fitted values of INTANGIBLEASSETS Ho: model has no omitted variables F(3, 1158) = 112.05 Prob > F = 0.0000
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